Afreximbank backs Heirs Energies expansion

African Export-Import Bank (Afreximbank) and Heirs Energies Limited have unveiled a US$750mn financing arrangement aimed at strengthening Heirs Energies’ capital structure and releasing liquidity to meet its working capital needs as it advances an extensive field development programme

The funding is expected to play a key role in boosting Nigeria’s domestic energy supply at a time of rising demand.

The agreement was signed in Abuja by Dr George Elombi, president and chairman of the board of directors of Afreximbank, and Tony O Elumelu CFR, chairman of Heirs Energies Limited. Structured as a dual-tranche, senior secured reserve-based lending facility, the financing is intended to support Heirs Energies’ next phase of expansion as the company seeks to increase and sustain oil and gas production.

Under the transaction, Afreximbank served as Mandated Lead Arranger, Facility Agent, and Security Agent. The deal is viewed as a significant step in the strategic relationship between Afreximbank and Heirs Energies, reflecting deeper collaboration between the two organisations.

Speaking after the signing, Dr Elombi described the partnership as evidence of Afreximbank’s focus on value creation and backing African entrepreneurs.

“Without investments, such as the one being provided to Heirs Energies, many fossil fuel-dependent African economies would face dire economic challenges,” said Dr Elombi. “Our aim, among others, is to empower the African entrepreneur. Our core strength is in the value of the partnerships we continue to forge.”

He also acknowledged Mr. Elumelu’s continued support for Afreximbank, noting that such collaborations have helped position the institution as a key driver of Africa’s economic transformation and broader development objectives.

Dr Elombi reiterated Afreximbank’s commitment to advancing the African Energy Bank initiative, stating, “we should get to higher strides and get the Energy Bank so we can move most of the energy portfolio there. We will put tremendous capital in it to be as bold and as innovative as Afreximbank”.

He further indicated that Afreximbank is open to working with Heirs Holdings and its affiliated businesses as they expand into other West African markets, including Ghana and Côte d’Ivoire, as well as across the wider continent. “Our aim is to spread and support the domination of the African brand across Africa.”

Tony O Elumelu, CFR, chairman of Heirs Energies Limited, said, “This transaction is a powerful affirmation of what African enterprise can achieve when backed by disciplined execution and long-term African capital. It reflects the successful journey Heirs Energies has taken – from turnaround to growth – and reinforces our belief in African capital working for African businesses. This is Africa financing Africa’s future.”

Heirs Energies occupies a central position in Nigeria’s oil and gas sector, where crude oil continues to hold major national and international significance.

The relationship between Afreximbank and Heirs Energies dates back to 2021, when the company, then operating as Heirs Oil and Gas, completed the acquisition of a 45% participating interest in the OML 17 Joint Venture. The US$1.1bn transaction was financed by a consortium of international and local banks led by Afreximbank and represented one of the largest indigenous energy acquisitions in Nigeria’s oil and gas industry.

Afreximbank contributed up to US$250mn to that financing, highlighting its commitment to developing Africa’s energy sector and supporting intra-African trade and African-owned businesses.

Following the acquisition, crude oil output increased from around 25,000 barrels per day to an average of 50,000 barrels per day, alongside growth in associated and non-associated gas production. Heirs Energies also achieved first gas from the Agbada Non-Associated Gas Plant on 21 November 2021, only months after assuming control of an asset that had remained under construction for more than a decade under the previous operator.

Today, Heirs Energies is the leading gas supplier within the Eastern Domestic Network and provides gas to three major power plants, together accounting for roughly 15% of Nigeria’s installed electricity generation capacity.